Bread Financial Holdings, Inc. · NYSE:BFH

Bread Financial — Alliance Data Systems — Non-Deal Roadshow (November 2008)

13 slides from Bread Financial's roadshow presentation, Nov 6, 2008

  1. Slide 1: Alliance Data Q4 2008

    Exhibit 99.1 Alliance Data Q4 NYSE:ADS 2008 ©2008 ADS Alliance Data Systems, Inc.

  2. Slide 2: Safe Harbor Statement/Forward-Looking Statements

    2008 Q4 ADS Roadshow 2 Alliance Data’s Safe Harbor Statement/Forward-Looking Statements • This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statemen

  3. Slide 3: Financial Measures

    2008 Q4 ADS Roadshow 3 Financial Measures • In addition to the results presented in accordance with generally accepted accounting principles, or GAAP, the Company presents financial measures that are non-GAAP measures, such as adjusted EBITDA, operating EBITDA and cash earnings per share. The Compan

  4. Slide 4: 2008 Guidance

    2008 Q4 ADS Roadshow 4 2008 Guidance Full Year ($MM) • Revenues $2,050 • Op. EBITDA $ 700 • Adjusted EBITDA $ 660 • Cash EPS $4.40 13% • Cash EPS increased from $4.35 to $4.40 • Raising guidance despite headwinds from: • Uptick in Credit Losses • Full year tracking to guidance 6.5% • Q4 – bit of a b

  5. Slide 5: 2009 Guidance

    2008 Q4 ADS Roadshow 5 2009 Guidance Full-Year ($MM) BASE REVS Adjusted EBITDA • Loyalty 18%/20% revs/EBITDA • Epsilon 8%/13% revs/EBITDA • Private Label 12%/12% revs EBITDA • Corporate O/H – Flat $2,300 $770 ADJUSTMENTS TO BASE • Credit Losses (100bps) ($44) ($44) • Funding/liquidity “insurance” ($

  6. Slide 6: 2009 Guidance

    2008 Q4 ADS Roadshow 6 2009 Guidance • Revenues: $2,150MM • Op. EBITDA: $ 720MM • Adjusted EBITDA: $ 680MM • Cash EPS: $5.15 - $5.20 17% – 18% ©2008 ADS Alliance Data Systems, Inc.

  7. Slide 7: Growth & Shift In Operating EBITDA (Op. Cash Flow)

    2008 Q4 ADS Roadshow 7 Growth & Shift In Operating EBITDA (Op. Cash Flow) 2005 20% CAGR 2009 $352MM $720MM 24% 44% 30% 33% 9% Loyalty Epsilon PL Services PL Credit 23% 17% 20% Loyalty/Marketing/Services 56% 70% Credit 44% 30% ©2008 ADS Alliance Data Systems, Inc.

  8. Slide 8: 2003-2009e Adjusted EBITDA and Cash EPS

    2008 Q4 ADS Roadshow 8 2003-2009e (in $MM, except per share) $5.15 - $5.20 Adjusted EBITDA $680 Cash EPS $4.40 $660 $632 $3.88 $3.14 $498 $321 $1.99 $255 $1.54 $189 $1.00 2003 2004 2005 2006 2007 2008e 2009e 2003 2004 2005 2006 2007 2008e 2009e ©2008 ADS Alliance Data Systems, Inc.

  9. Slide 9: Alliance Data: A Unique Business Model

    2008 Q4 ADS Roadshow 9 Alliance Data: A Unique Business Model Largest and Most Comprehensive Provider of Transaction- based Marketing and Loyalty Solutions • Highly sophisticated transaction-based programs are measurable, trackable and allow for micro-segmentation of clients’ customers. • Drives hig

  10. Slide 10: 2008 Outlook: Loyalty Services - Canada

    2008 Q4 ADS Roadshow 10 2008 Outlook: Loyalty Services - Canada • AIR MILES ® Reward Program is the Largest Mass Consumer Coalition Loyalty Program in Canada • 70% of Canadian Households Active in the Program • One of Canada’s Most Recognizable Brands • Despite Name, Revenues are not Driven by Airli

  11. Slide 11: 2008 Outlook: Epsilon Marketing Services

    2008 Q4 ADS Roadshow 11 2008 Outlook: Epsilon Marketing Services • Only Recognized Leader in Both Database Marketing and Email Marketing Services by Forrester • Most Comprehensive and Only Integrated Database Marketing Services Firm in the Industry • Marketing Strategy • Database Management • Propri

  12. Slide 12: 2008 Outlook: Private Label Services

    2008 Q4 ADS Roadshow 12 2008 Outlook: Private Label Services • Fully Integrated Loyalty-driven Private Label and Co-brand Programs • Loyalty & Marketing Programs • High-end Customer Care • Transaction Processing • Consumer’s Choice Driven by Loyalty and Relationship to Retailer, not a Need for Credi

  13. Slide 13: 2008 Outlook: Private Label Credit

    2008 Q4 ADS Roadshow 13 2008 Outlook: Private Label Credit • 11MM Active Households Each Month • 85% Female; Mid-to High-Income • Customer Views as Loyalty Program, not an Extension of Credit • 700 Average Bureau Score; Small Average Balances ($350/acct.) • No Sub-prime Targeting • Expect Negative A

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